The American freight market in the United States seems to be emerging from a two-year recession. Transport stocks have surged recently, and the two leading transportation indexes--considered early economic indicators and harbingers of a so-called bull market--have risen sharply in the wake of the Federal Reserve's latest interest rate cut.
Overall, this bodes well for Volvo, for which the U.S. is its second-largest market, according to a report by EFN.
Analysts are also taking a more optimistic view of the situation.
"This reflects that activity has improved, that the freight market has bottomed out. It's happening from very low levels, but we are starting to see an improvement," Hampus Engellau, automotive analyst at Handelsbanken, told EFN.
According to the Factset database, 13 out of the 23 analysts covering Volvo currently have a buy rating, with none recommending a sell.
